Makino Milling Machine (6135) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2024 were ¥108.2 billion, down 0.3% year-over-year, with operating income at ¥7.5 billion, down 2.6% year-over-year; net income attributable to owners was ¥5.78 billion, down 24.7%.

• Orders reached ¥108.6 billion, up 0.2% year-over-year, exceeding the 1H order plan by 8%, with strong demand in China (new energy vehicles), North America (aerospace), and a recovery trend in Japan and ASEAN for semiconductor equipment.

• Upward revision of full-year forecasts: net sales to ¥225.0 billion, operating income to ¥17.0 billion, ordinary income to ¥17.7 billion, and net income to ¥14.5 billion.

Financial highlights

• Operating income margin for 1H FY2024 was 7.0%; net income margin was 5.3%.

• Gross profit increased to ¥34.33 billion, but operating and net profit declined; EPS for the half-year was ¥244.87, down from ¥321.38 YoY.

• Comprehensive income turned negative at -¥308 million, compared to ¥14.39 billion YoY.

• Sales and profits exceeded forecasts due to JPY depreciation; exchange rate fluctuations contributed ¥6.96 billion to sales and ¥607 million to operating income year-over-year.

• Cash and cash equivalents at end of 1H FY2024: ¥76.67 billion; cash and deposits increased to ¥77.06 billion at period-end.

Outlook and guidance

• Revised full-year forecast: net sales ¥225.0 billion (up from ¥222.0 billion), operating income ¥17.0 billion (up from ¥15.5 billion), net income ¥14.5 billion (up from ¥13.5 billion), ordinary income ¥17.7 billion.

• Full-year dividend forecast was revised up to ¥180 per share (from ¥150 previous year).

• Orders for the second half are expected to exceed the first half, with continued strength in key markets.

• Exchange rate assumptions for FY2024: USD/JPY 149.00, EUR/JPY 160.00, SGD/JPY 110.00.